Finding 33614 (2022-001)

Condition: The Authority did not submit its annual budget, projected cashflow, and audited financial statements to the USDA. Criteria: The Authority is responsible for reporting to the USDA throughout the life of the loan, as specifically required within the Authority?s applicable agreement, via the RD 442-2, Statement of Budget, Income, and Equity report or other acceptable report. Cause: These reports are required to be submitted, as specified in the applicable loan agreement, however, management did not maintain a list of required reports to be submitted nor was there a process in place to ensure timely filing. Context: The reports were never specifically requested throughout the year by the Authority?s USDA representative, nor was the Authority notified of its tardy submission at any point during the fiscal year. The audited financial statements are available to the federal agency through the Authority?s website. Effect: The Authority did not follow the guidelines as laid out in the respective loan agreement for its reporting requirements. Questioned Costs: Not applicable. Recommendation: The Authority should continue to improve its understanding of the reporting requirements as specified in the applicable loan document and create a process to ensure reports are submitted in a timely manner. Views of Responsible Officials and Planned Corrective Actions: The Authority agrees with this finding. See management?s corrective action plan.